No-deal Brexit could see UK more than halving emergency petroleum stocks
In the event of a hard Brexit, the UK government would no longer require industry to hold the EU-mandated levels of strategic petroleum reserves, defaulting instead to much lower reserves stipulated by the International Energy Agency (IEA). Market analysts say this could see the UK’s emergency petroleum stocks more than halve, leaving the country more vulnerable to a prolonged supply disruption, potentially creating shortages of certain fuel-types where the country is reliant on imports, such as diesel.
The Department for Business, Energy and Industrial Strategy (BEIS) told the Financial Times that EU rules require each member state to hold 61 days’ worth of consumption in reserve. In the UK, this is equivalent to some 85mn barrels of oil. Under IEA rules, which are based on net imports, the government is reported to have said the level of stocks held in reserve would drop to 35mn barrels.